FireEye Reports Record Revenue for Fourth Quarter and Full Year 2017

Q4 Revenue of $202.3 million, an increase of 10 percent from the
fourth quarter of 2016

Q4 Billings of $242.2 million, an increase of 9 percent from the
fourth quarter of 2016

Q4 Cash flow generated by operations was $33.6 million, an increase
of 384 percent from the fourth quarter of 2016

Deferred revenue of $670.7 million, an increase of $39.9 million
from the end of the third quarter of 2017 and an increase of $17.2
million from the end of 2016

Strong Q4 performance against all key financial metrics and for all
major product groups and geographic regions, including record sales
for Endpoint Security, Helix, iSIGHT threat intelligence and Mandiant
services

“We achieved strong results across all key financial metrics in the
fourth quarter and delivered against our year-long commitment of
billings and revenue growth, non-GAAP operating profitability, and
positive operating and free cash flow by the fourth quarter,” said Kevin
Mandia, FireEye chief executive officer. “We delivered year-over-year
and sequential growth in every major product group and geographic
region, and we closed a record number of transactions greater than $1
million."

“We are building FireEye for the long-term, and we begin 2018 with a
solid foundation for future growth and increased profitability," added
Mandia. “The combination of our expertise on the front lines, our threat
intelligence, and our machine-generated cyber attack data gives us
greater visibility into the threat environment than any other security
company. I believe this is a sustainable competitive advantage for us.
We leverage our unique insights in our continuous innovation cycle that
allows us to rapidly adapt our solutions, deliver expertise on demand,
and remain relevant for our customers as the threat landscape evolves.”

Fourth Quarter 2017 Financial Results

Revenue of $202.3 million, an increase of 10 percent from the fourth
quarter of 2016, and above the guidance range of $190 million to $196
million.

Billings of $242.2 million, an increase of 9 percent from the fourth
quarter of 2016, and above the guidance range of $210 million to $230
million.1

GAAP gross margin of 66 percent, compared to 65 percent in the fourth
quarter of 2016.

Non-GAAP gross margin of 75 percent, compared to 74 percent in the
fourth quarter of 2016, and consistent with guidance of approximately
75 percent.1

Non-GAAP operating margin of positive 1 percent, compared to negative
1 percent in the fourth quarter of 2016, and consistent with the
guidance range of approximately negative 1 percent to positive 1
percent.1

GAAP net loss per share of $0.42, compared to a GAAP net loss per
share of $0.37 in the fourth quarter of 2016.

Non-GAAP net income per share of $0.01, compared to a non-GAAP net
loss per share of $0.03 in the fourth quarter of 2016, and better than
the guidance range of non-GAAP net loss per share of $0.00 to $0.03.1

Cash flow generated by operations was $33.6 million, compared to cash
flow generated by operations of $6.9 million in the fourth quarter of
2016, and better than the guidance range of $16 million to $25
million. Cash flow generated by operations in the fourth quarter of
2017 was reduced by a payment of $12.5 million in net legal settlement
costs.

2017 Financial Results

Revenue of $751.1 million, an increase of 5 percent from 2016, and
above the guidance range of $739 million to $745 million.

Billings of $768.3 million, a decrease of 6 percent from 2016, and
above the guidance range of $736 million to $756 million.1

GAAP net loss per share of $1.71, compared to a GAAP net loss per
share of $2.94 in 2016.

Non-GAAP net loss per share of $0.16, compared to a non-GAAP net loss
per share of $0.99 in 2016, and equal to the low end of the non-GAAP
net loss per share guidance range of $0.16 to $0.19.1

Cash flow generated by operations was $17.6 million, compared to cash
flow used in operations of $14.6 million in 2016, and better than the
guidance range for cash flow generated by operations of $1 million to
$10 million. Cash flow generated by operations in 2017 was reduced by
a payment of $12.5 million in net legal settlement costs.

1 A reconciliation of GAAP to non-GAAP financial measures is
provided in the financial statement tables included in this press
release. An explanation of these measures is also included under the
heading “Non-GAAP Financial Measures.”

First Quarter and 2018 Outlook

FireEye provides guidance based on current market conditions and
expectations. First quarter and full year 2018 guidance ranges reflect
the adoption of ASC 606.

Non-GAAP net loss per share for the first quarter assumes cash interest
expense of approximately $3 million associated with the company’s
convertible senior notes, provision for income taxes of between $1.0
million and $1.5 million, and weighted average shares outstanding of
approximately 186 million.

For 2018, FireEye currently expects

Revenue in the range of $815 million to $825 million.

Billings in the range of $810 million to $830 million.

Non-GAAP operating margin between 1 percent and 2 percent.

Non-GAAP net income per share between $0.00 and $0.04.

Positive cash flow generated by operations of $45 million to $55
million.

Capital expenditures between $35 million and $40 million, including
approximately $12 million in capital expenditures associated with the
relocation of the company's headquarters to a new building in January
2018.

Non-GAAP net income per share for 2018 assumes cash interest expense of
approximately $12.1 million, paid semi-annually in June and December,
associated with the company's convertible senior notes, provision for
income taxes of between $5.0 million and $6.0 million, and diluted
weighted average shares outstanding of approximately 197 million.

Guidance for non-GAAP financial measures excludes stock based
compensation, amortization of intangible assets, and non-cash interest
expense related to the company’s convertible senior notes. A
reconciliation of non-GAAP guidance measures to corresponding GAAP
measures is not available on a forward-looking basis due to the
uncertainty regarding, and the potential variability of, the amounts of
stock-based compensation expense, amortization of intangible assets, and
non-recurring expenses that may be incurred in the future. Stock-based
compensation expense is impacted by the company’s future hiring and
retention needs, as well as the future fair market value of the
company’s common stock, all of which is difficult to predict and subject
to constant change. The actual amount of stock-based compensation in the
first quarter of 2018 and full year 2018 will have a significant impact
on the company’s GAAP operating margin and net loss per share. Further,
amortization of intangible assets, as well as other non-recurring
expenses, if any, will also impact results. Accordingly, a
reconciliation of the non-GAAP financial measure guidance to the
corresponding GAAP measures is not available without unreasonable effort.

2018 Analyst Day Scheduled for March 1st

The company has scheduled its 2018 Analyst Day for March 1, 2018, with
management presentations beginning at 8:30 a.m. Pacific time. A live
audio webcast of the call, as well as related multi-media content, will
be available on the Investor Relations section of the company's website
at http://investors.fireeye.com/events.cfm.
An archived version of the webcast will be available at the same website
shortly after the conclusion of the live event.

Conference Call Information

FireEye will host a conference call today, February 8, 2018, at 5 p.m.
Eastern time (2 p.m. Pacific time) to discuss its fourth quarter and
fiscal 2017 financial results and the company’s outlook for the first
quarter and full year 2018. Interested parties may access the conference
call by dialing 877-312-5521 (domestic) or 678-894-3048 (international).
A live audio webcast of the call, as well as related multi-media
content, can be accessed from the Investor Relations section of the
company's website at http://investors.fireeye.com.
An archived version of the webcast will be available at the same website
shortly after the conclusion of the live event.

Forward-Looking Statements

This press release contains forward-looking statements, including
statements related to future financial results for the first quarter and
full year 2018, including revenue, billings, non-GAAP gross margin,
non-GAAP operating margin, cash flows generated by operations, interest
expense, provision for income taxes, non-GAAP net income (loss) per
share, basic and diluted weighted average shares outstanding and capital
expenditures in the section entitled “First Quarter and 2018 Outlook”
above, as well as statements related to future growth, profitability,
innovation, competitive advantages, and adapting as the threat landscape
evolves.

These forward-looking statements involve risks and uncertainties, as
well as assumptions which, if they do not fully materialize or prove
incorrect, could cause FireEye’s results to differ materially from those
expressed or implied by such forward-looking statements. The risks and
uncertainties that could cause FireEye’s results to differ materially
from those expressed or implied by such forward-looking statements
include customer demand and adoption of FireEye’s products and services;
real or perceived defects, errors or vulnerabilities in FireEye's
products or services; any delay in FireEye’s release of products or
services; FireEye's ability to react to trends and challenges in its
business and the markets in which it operates; FireEye's ability to
anticipate market needs or develop new or enhanced products and services
to meet those needs; FireEye’s ability to hire and retain critical
executives and key employees; FireEye’s ability to attract new and
retain existing customers and train its sales force; the budgeting
cycles, seasonal buying patterns and length of FireEye’s sales cycle;
risks associated with new offerings; sales and marketing execution
risks; the failure to achieve expected synergies and efficiencies of
operations between FireEye and its acquired companies; the ability of
FireEye and its acquired companies to successfully integrate their
respective market opportunities, technologies, products, personnel and
operations; the ability of FireEye and its partners to execute their
strategies, plans, objectives and expected investments with respect to
FireEye’s partnerships; and general market, political, economic, and
business conditions, as well as those risks and uncertainties included
under the captions “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in FireEye’s
Form 10-Q filed with the Securities and Exchange Commission on November
2, 2017, which should be read in conjunction with these financial
results and is available on the Investor Relations section of FireEye’s
website at investors.fireeye.com
and on the SEC website at www.sec.gov.

All forward-looking statements in this press release are based on
information available to the company as of the date hereof, and FireEye
does not assume any obligation to update the forward-looking statements
provided to reflect events that occur or circumstances that exist after
the date on which they were made, except as required by law. Any future
product, service, feature, or related specification that may be
referenced in this release is for informational purposes only and is not
a commitment to deliver any offering, technology or enhancement. FireEye
reserves the right to modify future product or service plans at any time.

Non-GAAP Financial Measures

In this release FireEye has provided financial information that has not
been prepared in accordance with generally accepted accounting
principles in the United States (GAAP). These non-GAAP financial
measures are not based on any standardized methodology and are not
necessarily comparable to similar measures used by other companies. The
company uses these non-GAAP financial measures internally in analyzing
its financial results and believes that the use of these non-GAAP
financial measures is useful to investors as an additional tool to
evaluate ongoing operating results and trends, and in comparing the
company's financial results with other companies in its industry, many
of which present similar non-GAAP financial measures.

Non-GAAP financial measures are not meant to be considered in isolation
or as a substitute for comparable financial information prepared in
accordance with GAAP, and should be read only in conjunction with the
company's consolidated financial statements prepared in accordance with
GAAP. A reconciliation of the company's non-GAAP financial measures to
their most directly comparable GAAP measures has been provided in the
financial statement tables included in this press release, and investors
are encouraged to review the reconciliation.

Billings. FireEye defines billings as revenue recognized plus the
change in deferred revenue from the beginning to the end of the period.
FireEye excludes deferred revenue assumed in connection with
acquisitions from the billings calculation. The company considers
billings to be a useful metric for management and investors because
billings drive deferred revenue balances, which are an important
indicator of the company’s future revenues. Revenue recognized from
deferred revenue represents a significant percentage of quarterly
revenue. There are a number of limitations related to the use of
billings versus revenue calculated in accordance with GAAP. First,
billings include amounts that have not yet been recognized as revenue.
Second, FireEye’s calculation of billings may be different from other
companies in its industry, some of which may not use billings, may
calculate billings differently, may have different billing frequencies,
or may use other financial measures to evaluate their performance, all
of which could reduce the usefulness of billings as a comparative
measure. FireEye compensates for these limitations by providing specific
information regarding GAAP revenue and evaluating billings together with
revenue calculated in accordance with GAAP.

Non-GAAP net income and net income per share in the fourth quarter of
2017 excluded stock-based compensation expense, amortization of
intangible assets, acquisition-related expenses, non-cash interest
expense related to the convertible senior notes issued in June 2015, and
legal settlement costs. Diluted weighted average shares outstanding used
to calculate non-GAAP net income per share excluded shares issuable upon
conversion of convertible senior notes that are anti-dilutive.

FireEye considers these non-GAAP financial measures to be useful metrics
for management and investors because they exclude the effect of
stock-based compensation expense, amortization of intangible assets,
acquisition related expenses, non-cash interest expense related to the
company’s convertible senior notes, change in fair value of contingent
earn-out liability, restructuring charges, and other non-recurring and
discrete items so that management and investors can compare the
company's core business operating results, over multiple periods.

There are a number of limitations related to the use of these non-GAAP
financial measures versus their nearest GAAP equivalents. First, these
non-GAAP financial measures exclude stock-based compensation expense.
Stock-based compensation expense has been and will continue to be for
the foreseeable future a significant recurring expense in the company's
business. Stock-based compensation is an important part of FireEye
employees' overall compensation. Second, the components of the costs
that FireEye excludes in its calculation of these non-GAAP financial
measures, including not only stock-based compensation, but also
non-recurring or non-operating items such as acquisition related
expenses, legal settlement costs, amortization of intangible assets,
non-cash interest expense related to the company’s convertible senior
notes, change in fair value of contingent earn-out liability,
restructuring charges, and discrete tax benefits, may differ from the
components excluded by peer companies when they report their non-GAAP
results of operations. FireEye compensates for these limitations by
providing specific information regarding the GAAP amounts excluded from
non-GAAP financial measures and evaluating non-GAAP financial measures
together with their nearest GAAP equivalents.

About FireEye, Inc.

FireEye is the intelligence-led security company. Working as a seamless,
scalable extension of customer security operations, FireEye offers a
single platform that blends innovative security technologies,
nation-state grade threat intelligence, and world-renowned Mandiant®
consulting. With this approach, FireEye eliminates the complexity and
burden of cyber security for organizations struggling to prepare for,
prevent, and respond to cyber attacks. FireEye has over 6,600 customers
across 67 countries, including more than 45 percent of the Forbes Global
2000.